100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
  2.  
  3. Junior / 11th Grade
  4.  
  5. Personal finance

Summary

Summary Rich Dad Poor Dad - Personal finance
 0 purchase
  • Course
  • Personal finance
  • Institution
  • Junior / 11th Grade

Here it is! A structured summary for the most famous book on personal finance: Rich Dad Poor Dad. It contains all the Key Points grouped by Lessons, to help you understand in a simple and efficient way!

Last document update: 6 months ago

Preview 5 out of 16  pages

Document information

  • Yes
  • August 14, 2024
  • August 14, 2024
  • 16
  • 2024/2025
  • Summary

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

Written for

  • Junior / 11th grade
  • Personal finance
  • 3

Seller

avatar-seller
MarksLittleShop

Content preview

RICH DAD POOR
DAD
KEY POINTS AND
SUMMARY

, ALL THE LESSONS FROM
THE BEST BOOK ON
PERSONAL FINANCE

 Lesson 1: The Poor and Middle-Class Work for Money
The Rich makes Money work for Him

 Lesson 1.1: People’s lives are forever controlled by two
emotions: fear and greed.
o Fear keeps people trapped by working hard and earning
little money
o People let emotions decide, they do not use their brains.
It would help if you chose what you think, not what you
Feel
o You need to learn to control fear and desire (greed) about
money first, although even if you earn lots of money, you
remain a highly-paid slave
o A Job does not make you secure, it's a short-term solution
for a long-term problem (money)
o Ignorance about money lets fear and greed mechanism
grow, Schools teach skills, not how money works, and for
that, you need a brain controlling your emotions and self-
studying
o Money is an illusion, just fake material things, they've got
no real power

 Lesson 2: It’s not how much money you make.

,It’s how much money you keep
 To be rich you first need to be financially literate

 Lesson 2.1: Rich people acquire assets. The poor and middle
class acquire liabilities that they think are assets
o You must know the difference between an asset and a
liability, and buy assets
o An asset puts money in my pocket. A liability takes money
out of my pocket
o An Income Statement measures income and expenses
(money-in, money-out)
o A Balance Sheet balances assets against liabilities
o Cash flow tells the story of how a person handles money

 Lesson 2.2: There are Three Main Powers: Military, Money, and
Self-Knowledge, the Rich also use the Last
o A person can be highly educated, professionally
successful, and financially illiterate.
o When you want to buy a liability, you should first buy
Assets that generate the cash flow to pay that liability
o The Rich get richer as they have a higher income than
expenses, which means more assets to buy which means
higher income

 Lesson 3: Mind Your Own Business
o The rich focus on their asset columns while everyone else
focuses on their income statements
o Business is NOT Profession, you can be a Chef working for
others' business. But it would help if you had another
business, your own One

, o Financial struggle is often the result of people working all
their lives for someone else.
o List of Real Assets:
 Businesses that do not require my presence I own
them, but they are managed or run by other people.
If I have to work there, it’s not a business. It has
become my job.
 Stocks
 Bonds
 Income-generating real estate
 Notes (IOUs)
 Royalties from intellectual property such as music,
scripts, and patents
 Anything else that has value, produces income or
appreciates, and has a ready market

 Lesson 3.1: Start minding your own business. Keep your
daytime job, but start buying real assets, not liabilities
o Rich people buy luxuries last, while the poor and middle
class tend to buy luxuries first

 Lesson 4: My rich dad just played the game smart, and he did
it through corporations and tax evasion (🤨😱), the biggest
secret of the rich
o Capitalism makes more sense than Socialism, as the rich
always find a legal way to evade disadvantages
o Taxes were made to punish the rich but they ended up
being paid by the middle and poor class
o Corporations are rich biggest secret, as they delay taxes to
a smaller quantitative of money

, o A corporation earns, and spends everything it can, and is
taxed on anything that is left

 Lesson 4.1: If you work for money, you give the power to your
employer. If money works for you, you keep the power and
control it
o Knowledge is power, the power makes you able to keep
money and make it multiply when the world tries to push
you around
o Be smart and you won’t be pushed around as much

 Lesson 4.2: Financial IQ is made up of knowledge from four
broad areas of expertise:
o Accounting, it's financial literacy or the ability to read
numbers. This is a vital skill if you want to build an
empire. The more money you are responsible for, the
more accuracy is required, or the house comes tumbling
down. This is the left-brain side or the details. Financial
literacy is the ability to read and understand financial
statements which allows you to identify the strengths and
weaknesses of any business.
o Investing, it's is the science of “money making money.”
This involves strategies and formulas which use the
creative right-brain side.
o Understanding markets, it's the science of supply and
demand. You need to know the technical aspects of the
market, which are emotion-driven, in addition to the
fundamental or economic aspects of an investment. Does
an investment make sense or does it not make sense
based on current market conditions?

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller MarksLittleShop. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $0.00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

65040 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Package deal ·

(0)

unit 5 level 2 sales and personal selling

Exam (elaborations) ·

(0)

NURS 6541 FINAL EXAM | Walden University | 2022-2023

Summary ·

(0)

Duidelijke samenvatting personen- en familierecht

Exam (elaborations) ·

(0)

GA MPJE EXAM 2024 WITH 100% CORRECT ANSWERS

Exam (elaborations) ·

(2)

Human Biology 16th Edition Mader Test Bank

Exam (elaborations) ·

(0)

Govt 2306 TOP Exam Questions and CORRECT Answers

Exam (elaborations) ·

(0)

CSIT 154 Final Exam || with 100% Error-free Answers.

Essay ·

(0)

Moduleopdracht Mechatronicatechnologie Cijfer (9,5)

Exam (elaborations) ·

(0)

CPPS - Module 1 exam 2023 with 100% correct answers
Free
  • (0)
Download